Monday, September 17, 2012

Oil Frenzy

No major hurdles or data... No announcements of FED, ECB or other institutions. Indices were going nowhere (very tight ranges across the board) and someone decided he/she had enough of it. Oil started to dive hard and it actually caused a tiny reaction in indices. Metals did go down together with oil for bigger losses (see below).

No major changes in indices, a small pullback would be welcome and would set us up for higher prices in the future.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
A huge move in oil seemed to trigger some selling pressure along the board. Nothing major for indices or the euro (flat), but metals got hit. Copper lost 2.2%, silver 1.8% and gold was down 0.8%.
Whatever happened in oil (SPR-release rumors, fat finger trade,...), I don't know for sure. What I do know is that oil went +4% lower in a matter of minutes. It ended the day down 3%.

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